Hi Erica

Perhaps it might be an idea to read the Terms and Conditions of the use of this website.

Specifically, item 5 of Communication Facilities which disallows posting of information that advertises or promotes another business without the Consent of PropertyInvesting.com

https://www.propertyinvesting.com/terms-conditions/#4

Putting a link…[Read more]

If you are planning to hold, look very carefully at the holding costs. You will likely find that both the council and water company will issue a separate set of rates per unit even though they are not on their own titles. This adds up very quickly and chews into your return. Also look very carefully into insurance. There are not heaps of…[Read more]

Hi eltonsky,

Is there something particularly awesome about this block that makes it worth the bother of proceeding? There are plenty of plots of dirt out there….

Some resi unitblocks are being utilized for commercial tenancies. Blood collection clinics and things like that. Businesses that don’t need to have loads of people at their site for ages taking up car-parking space. Just another reason why unitblocks are very popular as Richard says, and there is stiff competition for acquiring them.

Just something to be aware of is that when you use “equity release” to fund deposit and buying costs on a subsequent purchase, interest will have to be paid on the equity release. In other words, you’ll be paying interest on 100% of the purchase price of the subsequent property. Plus interest on the stamp duty and anything else you used your…[Read more]

Sure thing.

Hi Bobby

I agree with what has been mentioned above. It would be best to first define the goal. Only then can it be determined how to step closer to your goal.

Is the goal to collect properties?
Is the goal to end up with a certain income per month without attending a job? If so, what is the $ per month goal?
Is the goal to have fun renovating…[Read more]

Hi Johnny

Wow, nice one! Two properties under your belt at such a young age and covering their own costs. Good work – you have the best of both worlds. You are investing AND it’s not compromising your personal budget and us such your lifestyle. You are young and should be enjoying life somewhat along the way, after all :)

If you were to…[Read more]

Have you thought about what you paid in stamp duty and buying costs, and what you’d pay in selling fees in order to offload the asset?

Hi Chris

There is no need to be on principal & interest unless you cannot control your spending. Go interest only and put what you otherwise would have paid towards the principal part into an offset account. It achieves the same thing (interest reduction). When the amount of money in the offset is equal to the original debt, you’ll be charged…[Read more]

Why not convert it to Interest Only. It would reduce your holding costs.

Very nice of you Gayle – it’s a pleasure to work with such nice people as yourselves :)

Is it a Principal & Interest loan or interest only?

How come the property is negatively geared if the owings are $250k with $80k in the offset and a rent return of $350 per week? What’s the interest rate? Is it a principal & interest loan or interest only?

Depends on current age, income, other assets/income, and state of superannuation balance.

I buy whole houses for under $400k all the time. None of this units in body corporates nonsense. Whole houses. Don’t try to make a square peg fit a round hole. There is no point saying “it’s gotta be in Brisbane” and then wondering why you can’t find anything. It needs to be done the other way around. Define a set of criteria and find the…[Read more]

Hi Robinson

If the tenants are on a lease, then if the property is sold, the purchaser inherits the tenant and must abide by the lease. You cannot hide from a purchaser the fact that there is a tenant in place – this must be disclosed. If you sold the property quietly, the tenant would not necessarily know. All they would know about is things…[Read more]

Well… put yourself in the lender’s shoes. The want to be able to see that you can make repayments. Sounds like that is not possible, so a conventional lender (ie bank) might not work for you…

A private lender might be ok with it, given the right parameters.

I would not care where such a property was located. These are not good numbers. You will be severely cashflow negative with such a property, meaning that the rent will come nowhere close to covering the mortgage and bills, so you’ll have to prop it up for a lot of years by working in a job or earning income via some other means, to subsidise…[Read more]

Be wary of anything that is government funded. NRAS falls within this category. Government changes every 4 years. I don’t think you fancy shivering in your boots just after every election to see the fallout to your cashflow position.